Report: Pepsico plans to phase out cola drink by end of the year; will focus on diet colas.May 20, 2005: 3:01 PM EDT

NEW YORK (CNN/Money) -
After failing to find a niche in the soft drink market, Pepsico announced Thursday that they plan to dump the cola drink Pepsi Edge from its product line, according to a news report.

Marketed as a "mid-calorie cola" with half the sugar of its regular Pepsi, Pepsi Edge would be discontinued by the end of the year, according to a report in AdAge.com, and advertising trade publication.

A company spokesperson told the publication that it plans to strictly focus on its Diet Pepsi and Pepsi One products in the future, recognizing that consumers tend to prefer zero-calorie products.

Pepsico was hoping to attract calorie-conscious customers who switch between regular and diet colas, but preferred the sweetened version, the trade journal reported.

Coca-Cola (down $0.19 to $45.06, Research) offers a similar mid-calorie drink called C2, but the company does not have plans to cancel production of the drink, according to AdAge.com.

Shares of Pepsico (up $0.06 to $57.09, Research) edged lower in late morning trade on the New York Stock Exchange.